KHammond-CaseAnalysis-Unit2

KHammond-CaseAnalysis-Unit2 - Unit 2 Case Analysis Unit 2...

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Unit 2 Case Analysis 1 Unit 2 Case Analysis Katina Hammond LS311: Business Law I April 2, 2012
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Unit 2 Case Analysis 2 THE CASE BAKER v OSBORNE DEVELOPMENT CORP. California Court of Appeals, 4 th Division, 2008 Cal.Rptr.3d 854 (2008) Thomas Baker and others who bought new homes from Osborne Development Corp. sued for multiple defects in the houses they purchased. When Osborne sold the homes, it paid for them to be in a new home warranty program administered by Home Buyers Warranty (HBW). When the company enrolled a home with HBW, it paid a fee and filled out a form that stated the following: “By signing below, you acknowledge that you…CONSENT TO THE TERMS OF THESE DOCUMENTS INCLUDING THE BINDING ARBITRATION PROVISION contained therein.” HBW then issued warranty booklets to the new homeowners that stated: “Any and all claims disputes and controversies by or between the Homeowner, the Builder, the Warrant Insurer and/or HBW…shall be submitted to arbitration.” THE ISSUE AT HAND Would the new homeowners by bound by the arbitration agreement, or could they sue the builder, Osborne, in court?
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KHammond-CaseAnalysis-Unit2 - Unit 2 Case Analysis Unit 2...

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